An MBA has long come with a simple promise: invest in the degree today and earn a bigger paycheck tomorrow. But for this year’s graduates, that equation is beginning to change.
After many members of the class of 2025 spent months searching for work despite graduating from top business schools, new data suggests the outlook isn’t improving.
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The median starting salary for new MBA graduates is expected to fall to $120,000 this year, down from $125,000 in 2025, according to a Graduate Management Admission Council survey cited by The Wall Street Journal. (1)
Daniel Alves do Quental, a graduate of Harvard Business School, knows firsthand how competitive the market has become. The 29-year-old from Portugal said he spent months networking, asking professors to introduce him to alumni and industry contacts at the consulting firms he hoped to join.
“Top schools open doors, but they don’t walk you through them,” he told The Journal (2).
Why MBA graduates are struggling to find jobs
The softer hiring market isn’t just affecting MBA graduates.
The slowdown extends beyond MBA programs. Employers also expect graduates with other business master’s degrees to earn about 10% less this year, (1) with median starting salaries projected to fall from $92,500 to $82,500 as companies grow more selective about hiring early-career talent.
The tougher hiring environment is becoming increasingly visible, even at some of the country’s most prestigious business schools. At Duke University’s Fuqua School of Business, more than one in five graduates seeking jobs (2) were still searching three months after graduation last summer. At the University of Michigan’s Ross School of Business, the figure was about one in seven.
Tim Westerbeck, co-chairman of higher education consulting firm Eduvantis, said MBA graduates have traditionally relied on analyst roles in consulting and finance as a launching pad for their careers. But those are also the kinds of positions AI is increasingly capable of handling.
“This isn’t an obituary, the market for MBA-level work may be shrinking, permanently, to a smaller size,” Westerbeck told the Wall Street Journal (3).
That uncertainty comes with a hefty price tag. The average MBA costs (4) about $63,000, while tuition at some top-tier business schools can reach roughly $125,000 a year. Although public universities and online programs often cost less, many graduates still leave school after making a significant financial investment.
For those who don’t land a job quickly, recovering that investment can take much longer than expected. Instead of stepping into the higher salary they planned for, some graduates may find themselves continuing their job search while managing student debt or other education costs.
Artificial intelligence isn’t replacing the value of an MBA overnight, but it is changing what employers expect from graduates.
For new graduates, AI is adding another layer of uncertainty to an already competitive hiring market. After waves of layoffs at major tech companies and slower hiring across corporate America, many are wondering how the technology will reshape the careers they’re hoping to build.
Some industry leaders believe the biggest changes are happening in entry-level work. Aaron Cheris, global head of retail practice at Bain & Company, compared AI to “an infinite supply of 21-year-old interns” that can handle many of the routine tasks once assigned to junior employees.
“The job they used to do is now the one that AI is doing, right? AI is doing the entry-level job,” Cheris told CNBC (5).
The concerns aren’t unfounded. A 2025 Pew Research Center survey (6) found that 52% of workers are worried about AI’s future impact on the workplace, while one-third said the technology leaves them feeling overwhelmed.
Meanwhile, the study found that one in three corporate recruiters said AI is already reshaping hiring plans, with some entry-level roles being replaced by the technology.
That doesn’t mean employers are turning away from MBA graduates. Instead, they’re becoming more selective, with communication, problem-solving and adaptability remaining among the most sought-after skills.
Not every MBA leads to the same outcome. Graduates who enter (7) consulting, finance and technology continue to see some of the strongest earning potential, while expertise in artificial intelligence and data analytics is becoming increasingly valuable.
There are also opportunities beyond North America. The survey found employers in Western Europe and Asia remain eager to hire international talent, with four in five saying they would consider graduates who require additional legal documentation to work there.
For prospective students, the question is no longer simply whether an MBA is worth pursuing — it’s whether the return justifies the investment. The degree may still open doors, but it’s what graduates bring with it that determines how far those doors will take them.
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